Impartible jagir compensation retained Hindu undivided family character, limiting estate duty inclusion to the deceased's undivided share.

On resumption of an impartible jagir, compensation paid with the connected properties did not become the individual property of the last jagirdar merely because he was the recorded holder. The Court applied the settled principle that such property was held in the capacity of karta of the Hindu undivided family, so the estate duty provisions did not warrant treating the entire compensation and related assets as passing from the deceased personally. Only the deceased's undivided one-fifth share was includible in the principal value of the estate.

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Issues: Whether compensation received on resumption of an impartible jagir, together with the connected properties, was liable to be included wholly in the principal value of the estate for estate duty, or whether only one-fifth share was includible.

Analysis: The reference turned on the character of the jagir compensation after resumption. The Court applied the settled position that where an impartible estate governed by primogeniture is resumed and compensation is granted, the property does not remain the individual property of the holder merely because he was the last jagirdar. The earlier decisions relied upon had already recognised that, in such circumstances, the holder takes the property in the capacity of karta of the Hindu undivided family and not as sole owner. The provisions of the estate duty law did not justify treating the entire compensation and all related properties as passing from the deceased as his individual estate.

Conclusion: The Tribunal was not right in holding that the compensation and all other properties were fully includible in the principal value of the estate. Only one-fifth share in the properties was liable to be included.

Ratio Decidendi: On resumption of an impartible jagir, the compensation and related properties retain the character of Hindu undivided family property, so only the deceased's undivided share is includible in the estate for estate duty purposes.

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